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Cameron an individual and Totco, Inc a domestic C corporation, have obvious to form CT, a California LLC. The new LLC will products a product that Cameron has recently developed and patented. Cameron and Totco, Inc will each have a 50 % capital as well as profits interest in the LLC. Cameron is a calendar year taxpayer while Totco is taxed on a July 1-June 39 fiscal year. The LLC doesn't have a natural business year as well as elects to be taxed as a partnership.
a. Define the taxable year of the LLC under the existing Code and Regulations.
b. Two years after creation of the LLC Cameron sells half of his interest (25%) to Totco Inc Can the LLC recall the taxable year determined in part a?
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